Down on this farm, cookies and crackers are king. Pepperidge Farm, maker of Milano cookies and Goldfish snack crackers, generates about a quarter of comfort food giant Campbell Soup Company's sales. Along with Arnott's biscuits made for Asia/Pacific and Australia, Pepperidge Farm is part of Campbell's Global Baking and Snacking unit. Founded in 1937, Pepperidge Farm now boasts a vast products portfolio that includes fresh bread and rolls, stuffing mix, ready-made croutons, and frozen puff pastry. The company sells its items in more than 45 countries worldwide through two of Campbell's business segments: North America Foodservice and International Simple Meals and Beverages.
From its headquarters in Norwalk, Connecticut, snack foods maker Pepperidge Farm operates a global business by maintaining relationships with more than 40 distributors and 85-plus retailers worldwide. It has extended its reach outside the US to Asia/Pacific, the Far East, Canada, the Caribbean, Central America, Europe, and South America.
During 2012 Campbell's second-largest business segment, Global Baking and Snacking, accounted for 28% of sales. Pepperidge Farms outperformed fellow snack foods company Arnott's in this segment. Sales rose 2% in 2012 thanks to Pepperidge Farms, which enjoyed higher selling prices across its portfolio tempered by increased promotional spending. Sales of Goldfish crackers, for instance, saw double-digit sales while sales of cookies and frozen products slowed.
Campbell is working to further accelerate the Baking and Snacking business through product innovation. In late 2012 the company opened a new innovation center at its Connecticut headquarters. It had set aside more than $30 million to build the 34,000-sq.-ft. center using LEED-certified (Leadership in Energy and Environmental Design) "green" construction methods.
Pepperidge Farm is also expanding production capacity and upgrading its facility. The investment follows its $66 million purchase of US gourmet artisan bread maker and distributor Ecce Panis in 2009.
Parent company Campbell is voluntarily pushing for healthier products, particularly those marketed to children. Goldfish crackers, for example, are specifically called out by some regulators as too heavy in saturated fat and salt. To this end, Pepperidge Farm has eliminated the use of trans fat in the crackers, cut salt (in some options), eliminated artificial colors, and introduced a whole-wheat variety. Other health initiatives include a Baked Naturals Cracker, hailed as 60% to 65% less fat and a comparable serving of potato chips, and an announced plan to cut the salt in 80% of its breads. The company has also garnered approval by diet behemoth Weight Watchers for its Pepperidge Farm Deli Flats bread.
Sales and Marketing
Like snack foods giant Snyder's-Lance, Pepperidge Farm enjoys a Direct-Store-Delivery (DSD) system to get its product in front of customers. Leveraging a network of more than 3,500 independent distributors that operate 4,000-plus snack-products distribution routes, Pepperidge Farm makes its cookies and crackers available through the US and its bread, stuffing, and croutons a staple east of the Rocky Mountains.
Pepperidge Farm is owned by top food manufacturer Campbell Soup Company.
Pepperidge Farm, named for an ancient Pepperidge tree, was purchased by Campbell Soup in 1961. Under Campbell's direction, the Pepperidge Farm product portfolio has swelled from 58 products to about 600 items, and its sales from $32 million in 1961 to more than $2 billion (as a segment). The Pepperidge Farm name is among the top 2% of globally recognized brands.